The Abuja Chamber of Commerce and Industry (ACCI) has called for the suspension of the proposed Sugar Sweetened Beverages (SSBs) tax bill recently approved by the Senate, warning that the measure could negatively affect jobs, investments, and Micro, Small and Medium Enterprises (MSMEs) across Nigeria. The Chamber urged the House of Representatives to reconsider the proposal, which seeks to replace the current flat excise duty on sweetened beverages with a percentage-based levy tied to retail prices.
Impact on Businesses
In a statement issued on Tuesday, ACCI President Emeka Obegolu said that while the Chamber supports government efforts to improve public health outcomes, the proposed tax structure could place additional financial pressure on businesses already grappling with inflation, foreign exchange volatility, rising energy costs, and other operational challenges. According to him, the non-alcoholic beverage industry supports a wide network of manufacturers, distributors, retailers, transporters, hospitality operators, and informal traders whose livelihoods depend on the sector. He said the introduction of additional fiscal burdens could weaken business sustainability, discourage investment, and threaten employment across the beverage value chain.
Concerns Over Tax Model
Obegolu also expressed concerns about the proposed shift from a predictable per-litre excise duty to a retail price-based tax model, arguing that the new system could create uncertainty for businesses and investors, increase compliance costs, and further raise the cost of doing business. While reaffirming ACCI’s support for efforts to reduce the prevalence of non-communicable diseases, he said public health interventions should be evidence-based, predictable, and structured to encourage innovation rather than impose excessive burdens on productive sectors of the economy.
Recommendations
The Chamber recommended that lawmakers suspend further consideration of the percentage-based levy and engage stakeholders in broader consultations. It also proposed the adoption of a sugar content-based excise framework that would tax beverages according to actual sugar levels, a move ACCI said would encourage manufacturers to reformulate products and reduce sugar content. In addition, the Chamber called for any amendment to the tax regime to be aligned with the Federal Government’s wider fiscal reform agenda in order to avoid multiple taxation and additional compliance obligations for businesses.
“We are not choosing between health and wealth; we are advocating a policy framework that achieves both,” Obegolu said, adding that Nigeria can improve public health outcomes while preserving jobs, supporting investments, and maintaining the competitiveness of its manufacturing sector. The Chamber further urged the Federal Government to ensure that revenues generated from any sweetened beverage tax are transparently invested in health education, nutrition awareness campaigns, non-communicable disease prevention programmes, and initiatives that support local manufacturers in developing healthier product alternatives.
ACCI reaffirmed its commitment to engaging with government, lawmakers, regulators, and industry stakeholders to develop policies that promote public health, protect jobs, strengthen private sector competitiveness, and support Nigeria’s economic development.
